Shell wants partner for $500m plant

Shell Chemicals, the petrochemicals unit of Royal Dutch Shell, is seeking potential partners for a $500 million styrene monomer and propylene oxide (SMPO) manufacturing facility it plans to build in Singapore, Tootoo.com reported a senior company executive as saying.

Strong demand for SMPO, which are chemicals used in the production of polystyrene containers and rubber soles, is underpinning the project, said Fang Yea-Yee, Shell Chemical's general manager for SMPO and derivatives.

'A lot of work is going on and we are in discussions with possible joint venture partners,' Fang said.

Shell Chemicals has an existing SMPO joint venture with Germany's BASF in Singapore. The joint venture company, called Ellba Eastern, produces 250,000 tons of propylene oxide and 550,000 tons of styrene monomer annually.

'Shell believes the strong growth in the Asia-Pacific demand for both styrene and propylene oxide will continue to create attractive opportunities for new SMPO investments,' Fang said.